Branded Store Revenues in Georgia: Trends and Growth
Branded stores are playing an increasingly important role in Georgia’s retail sector, as evidenced by their growing revenue. From
Branded stores are playing an increasingly important role in Georgia’s retail sector, as evidenced by their growing revenue. From January to August 2024, branded stores in Georgia generated revenues of 5.9 billion GEL, which is 16.5% higher compared to the same period last year. According to research by Galt & Taggart, this growth is driven by inflation, increased demand, and geographic expansion linked to the proliferation of branded networks. Particularly significant was the opening of new stores between 2018 and 2023, which played a major role in this growth.
The growth of branded stores in Georgia has been especially noticeable in recent years. From 2018 to 2023, their market share increased from 22% to 39%, indicating a growing interest among consumers in branded products and the diversification of retail. Inflation has been one of the main driving factors behind this growth, as rising prices have increased the value of products. However, rising demand and geographic expansion have had an even greater impact.
The research also notes that between 2023 and 2028, the market for branded chains will continue to grow at an annual rate of 18.4%, leading to an increase in market share to 56%. During the same period, an additional 1,100 new stores are planned to open in Tbilisi, and 1,800 in the regions. These forecasts suggest that the market for branded store chains will be one of the leading sectors in retail.
The growth in revenue of branded stores is also evident in global markets. On international markets, inflation, geographic expansion, and growing consumer interest in branded products play a significant role in revenue growth. According to Statista, in 2024, global branded retail revenue reached $3.4 trillion, an 11% increase compared to the previous year. This growth was supported by increasing consumer demand for quality products as well as the emergence of new markets in Asia and Africa.
In Europe, where the market for branded stores is more saturated, growth is mainly driven by the development of innovative services and the spread of online retail. For example, in the UK, the share of branded stores in the retail sector reached 47% in 2024, reflecting growing consumer interest in high-quality and well-known brands. One of the main reasons for this is the high level of trust in brands and their guarantee of quality.
In the United States, branded store revenue amounted to $1.1 trillion in 2024, representing 40% of the retail market. American consumers tend to prefer well-known brands that offer both quality and reliable service. This preference is also driven by consumer interest in environmentally friendly products, which branded companies actively support.
The 16.5% growth in revenue from branded stores in Georgia indicates that the retail sector is actively developing, and consumer confidence in branded products is increasing. At the same time, the impact of inflation is significant, explained by rising prices and consequently increased revenues. However, the main factor behind this growth remains geographic expansion, driven by the opening of new stores and network expansion.
Global trends, such as increasing consumer interest in branded products and geographic expansion, are also evident in the Georgian market. However, in Georgia, one of the main factors driving the growth in branded store revenues is inflation, whereas in developed countries like the UK and the United States, growth is primarily achieved through increasing consumer demand for quality products and the development of online retail.
The data from 2024 suggests that the branded store market in Georgia is actively developing and has significant potential. Inflation, rising demand, and geographic expansion are the main factors driving this growth. According to forecasts, the market will maintain an annual growth rate of 18.4% between 2023 and 2028, leading to an increase in market share to 56%. This means that in the future, branded store chains will play an even more important role in Georgian retail.
Considering global trends, the branded store market in Georgia could grow even further if online retail develops and consumer trust in quality products strengthens. To achieve this, it is important to open new stores, improve services, and carry out marketing campaigns that will help further expand the branded store market and increase revenues.